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The National Business Aviation Association and about 80 stakeholders sent a letter to congressional leaders on April 22 calling for the passage of the Sustainable Skies Act, which would create a blender tax credit for Sustainable Aviation Fuels (SAF).
“We believe that the most important action Congress can take to support the decarbonization of the aviation sector is to enact a mixer tax credit specifically designed to stimulate the production and use of SAF,” the groups wrote.
They continued, “SAF is widely seen as the most important driver of aviation decarbonization, as electrification and other advanced propulsion technologies are currently not feasible for medium and long-haul flights that account for the vast majority of aviation’s greenhouse gas emissions.”
The SCA’s blender tax deduction will start at $1.50 per gallon and will be available to SAF blenders that can show greenhouse gas emissions reductions of 50 percent or more when compared to standard jet fuel. An additional 1 percent per gallon can be claimed for each percentage the fuel reduces emissions by more than 50 percent. This means that a SAF that reduces emissions by 70 percent will be eligible for $1.70 per gallon of credit, and a SAF that achieves a 99 percent reduction can claim $1.99 per gallon of credit. The maximum credit will be set at $2.00 per gallon.
The letter stresses that the tax credit “will enhance and accelerate investment in the emerging domestic SAF industry while maintaining strict environmental standards and ensuring that the fuels with the greatest emissions reductions qualifies for the largest tax incentive.”
The letter was signed by the Aerospace Industries Association, International Helicopters Association, Airbus, Honeywell, Air, Infinium, Association of Aircraft Owners and Pilots, International Air Transport Association, Airline Passenger Experience Association, International Flight Services Association, Airline Pilots Association, and JetBlue, American Airlines, LanzaJet, Airports Council International – North America, LanzaTech, Air Transportation Services Group, Marquis Sustainable Aviation Fuels, Association of Alaska Airlines National Air Carriers, Alder Fuels, National Air Transport Association, Algal Biomass Organization, National Association For State Aviation Officials, American Airlines, National Business Aviation Association, American Association of Airport Executives, Neste, American Express Global Business Travel, NetJets, Association of Flight Attendant -CWA, NetJets Association of Shared Aircraft Pilot, Atlas Air Worldwide, Port of Portland, Avfuel, Port Seattle/Seattle Tacom A International Airport, Biotechnology Innovation Organization, Pratt & Whitney, The Bowen Company GH, Red Biofuels, Bombardier Regional Airlines Consortium, BOM, Renewable Fuels Association, Business Aviation Alliance for Sustainable Aviation Fuels, Rolls Royce, Carbon Engineering, San Francisco International Airport, Air Cargo Association, Shell Air, Cincinnati/North Airport Kentucky International, Signature Aviation, Delta, Sky NRG Americas, DHL, Southwest Airlines, Embraer, Southwest Pilots Association, FedEx Express, Third Way, Fulcrum Bio Energy, Travelers United, GE Aviation, United General Manufacturers Association Aviation, United Parcel Service, Gevo, US Travel Association, Global Business Travel Association, Velocys, Green Plains, VeriJet, Growth Energy, World Energy, Gulfstream, World Fuel Services, and Hawaiian Airlines.
Additional information is available on the NBAA website.